JD.com posts slow revenue growth in Q2

Chinese online retailer JD.com posted US$40 billion in net revenue in the second quarter of 2022, a growing by 5.4% from the same quarter last year.

Photo credit: Daniel Cukier (CC 2.0)

The increase was mainly due to its retail business: Its revenues went up by 3.87% to hit US$36 billion, accounting for 90% of the company’s total revenue. Other contributing segments included JD.com’s logistics business, which saw around 20% growth, as well as new businesses and Dada, its on-demand delivery platform.

Meanwhile, JD.com’s income from operations jumped from US$44 million in Q2 2021 to US$555 million this year. Its net income attributable to ordinary shareholders soared from US$117 million to US$643 million.

“JD.com’s resilient business model, industry-leading supply chain capabilities, and efficient operations helped us deliver solid quarterly results amidst ongoing challenges in the external environment,” said company CEO Lei Xu.

Around 30,000 JD.com partner stores saw over 500% year-on-year increases in transaction volume after the JD618 Grand Promotion, one of the largest shopping festivals in China.

During the event, which was was held from May 23 to June 20, omnichannel supermarket JD Super collaborated with more than 27,000 brands and over 34,000 offline stores to support the company’s one-hour delivery service for Chinese consumers in nearly 400 cities.

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Meanwhile, JD.com’s on-demand retail services, including its Shop Now program and JD Daojia (JDDJ), serve consumers in over 1,700 cities and counties across China. Together, Shop Now and JDDJ achieved a 77% year-on-year increase.

JD.com’s number of annual active customers reached 580.8 million in the 12 months ended in June 2022, rising by 9.2% from 531.9 million during the same period last year.